* Note: Prices are in Million (M) USD.
Description:
Ralph Lauren Corporation is an American fashion company producing products ranging from the mid-range to the luxury segments. They are known for the clothing, marketing and distribution of products in four categories: apparel, home, accessories, and fragrances.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,923 M
Debt : $2,648 M
EBITDA : $1,213 M
Net Debt (Debt - Cash): $725 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Consumer Cyclical
Industry: Apparel Manufacturing
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 18.29
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $578 M
Average Revenue: $6,047 M
Revenue Converted To Free Cash Flow (%): 10%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 74.58%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-03-31): $7,079 M
Revenue 4 Years Ago (2021-03-31): $4,401 M
Last 5 Years Average Revenue Growth: 12%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-03-31): $64 M
Share Count 5 Years Ago (2021-03-31): $74 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $16.34
Trailing 12-Month Earnings Per Share (EPS): $14.87
Average Earnings Per Share (EPS): $15.61
Dividend Per Share (DPS): $3
Payout Ratio: 22%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 15%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $285
52-Week Low: $156
Threshold Price (15% Above 52-Week Low): $179
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $17,479 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Ralph Lauren Corp Class A (RL) stock.
Last 19 Years Avg PE 18.79, Fair Value PE 15, Industry Based PE 15, Growth Based PE 12, RCFC Based PE 9.6. Based on these 5 values, average assigned is 14.08.
Value-Trades has assined P/E value 14.08. Since an average (Current Year EPS + Next Year EPS) earning per share is $15.605.
The fair value of Ralph Lauren Corp Class A (RL) stock should be (14.08 x $15.605) = $219.72
